[Digital Today reporter Seok Dae-geon] President Lee Jae-myung (이재명) said he would use a supply chain crisis sparked by the Middle East war as a catalyst for industrial restructuring and stressed the creation of a Korean-style sovereign wealth fund. At a senior aides meeting at Cheong Wa Dae on Wednesday, Lee said the global trade order was at a major turning point as the free trade order retreats and geopolitical risks deepen. He urged sweeping innovation, saying the stakes were national given South Korea's high reliance on manufacturing.

Lee called for protecting advanced technology and talent as matters of national security and for the government to create demand first through public procurement of innovative products. He stressed the need to ensure a Korean-style sovereign wealth fund to secure stable "manufacturing sovereignty", along with upgrading regional manufacturing capabilities and building an AI-based manufacturing ecosystem. The government said in a presidential work report last December that it would set up a sovereign wealth fund in the first half of this year for long-term investment in national strategic sectors.

He also cited progress in pre-emptive responses to supply chain risks. Lee mentioned that chief of staff Kang Hoon-sik (강훈식) secured 273 million barrels of crude oil and other resources through visits to four countries in the Middle East and Central Asia, and encouraged him, saying he must not have slept well but worked hard. He praised the achievement, saying it came at a time when the Middle East war was entering its seventh week and supply chain risks could expand quickly, and added it would help minimise damage to the economy and industry.

The government is also accelerating its fiscal response. The Ministry of Trade, Industry and Energy said it confirmed a 1.1 trillion won supplementary budget for 2026 after a plenary session vote in the National Assembly on April 10. The package consists of 869.1 billion won for supply chain stabilisation, 145.9 billion won to support affected industries and 83 billion won to support the manufacturing AI transformation programme (M.AX). It said an additional 204.9 billion won was allocated, compared with the government proposal, for a programme to support stable naphtha supply in response to disruptions.

For reference, the stable naphtha supply support programme operates by subsidising 50 percent of increases in import prices for naphtha. It reflected additional increases in naphtha prices after the supplementary budget was drafted and expanded eligible beneficiaries to include base oils. The ministry said it expects the measures to contribute to stabilising supplies of daily necessities and consumer prices.